Work

For love or money? A study of financial returns on informal investments in businesses owned by relatives, friends, and strangers

Year: 2007

Type: article

Abstract: Agency and altruism theory are combined to develop a framework for explaining expected returns on informal investments in 35 countries that participated in the Global Entrepreneurship Monitor (GEM) in 2004 and 2005. The principal finding is that altruism affects expected returns. Expected returns increase as the relationship distance between the investor and the entrepreneur increases; men expect higher returns than women; entrepreneurs expect higher returns than non-entrepreneurs; expected returns increase as the amount invested increases; old persons expect lower returns than young ones; entrepreneurs expect higher returns on investments in their own businesses than on their investments in others’ businesses.

Source: Swinburne figshare (Swinburne University of Technology)

DOI: 10.25916/sut.26287306

Authors: Bygrave, William, Hunt, Stephen

Institutions: Babson College, London Business School

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W1502437201

FWCI: 0.809

Cites: 18

Cited by: 7

Related to: 10